By Ariana Gordon

GUYANA on Wednesday signed a US$50M concessional loan agreement with the Government of India for the construction of a major road that will link the East Bank and East Coast of Demerara. Financing will be received from the Export-Import Bank of India and will result in a four-lane road being built with two of those lanes being paved during the first phase of the project. Minister of Public Infrastructure, David Patterson told reporters following the signing of the contract, that after all other documentation is completed along with a road design, construction is likely to begin by year end.
He anticipates that the project will conclude some 18 to 24 months after. The Public Infrastructure Minister noted that because funding is being received from the Government of India, the contract for the construction will be open to Indian Construction companies. However, Patterson was quick to state that local contractors will also be given an opportunity to be awarded sub-contracts. “The idea of linking the East Coast and East Bank, which is the initial step, has been around since the 70s and it is something which when completed the government will open up several opportunities – not only infrastructure-wise but in agriculture,” Patterson said, noting that the project will provide relief to the strained roadways in the city. “This will offer us an opportunity to divert some traffic from the city of Georgetown. The city roads in Georgetown are under pressure because of the volume of cars but we do hope that after the completion of this project we will be able to not only take off the traffic but also to open new visitors for us.”
The Public Infrastructure Minister stressed that the signing of the agreement is just the first phase of the project, while adding that the design of the new stretch of roadway still has to be completed. “We would like to thank the Government of India for continuing with this project …the gestation started before our administration. Thank you for continuing the project, thank you for having the trust and the faith in this administration for carrying this project to a conclusion,” said Minister Patterson to the representatives of the Government of India and the Export-Import Bank of India.
Minister of Finance Winston Jordan, who signed the contract, said India and Guyana have over the years shared strong bilateral relations, noting that the countries’ ties date back to independence. India, he said, has continued to be a reliable partner. “At a time when concessionary resources are dwindling and at a time when we have extreme demands for accelerating our development, India has continued to be a reliable partner in development, generously donating grants, technical assistance in various areas, health, education, transportation…a wide variety of sectors and for this we are eternally grateful,” Jordan stated.
The Finance Minister noted that the two countries will continue to share close ties given the fact that India is one of Guyana’s largest bilateral donors. Minister Jordan said while the physical construction of such roadwork is important it is equally critical to examine the spin-off benefits that will accrue as a result. The construction of new roads, he said, will result in the development of new communities, the establishment of businesses and other activities that will lend to a favourable economic situation here.
The Finance Minister pointed to cases of non-use of all loans provided to the Government of Guyana in the past. “I hope that we, unlike the recent past, where unfortunately we have not made full use of the assistance that has been given, whether for reasons that we all know, as in the case of the Specialty Hospital or for other reasons, as in the case of the pumps which we haven’t used in full. I hope this will not happen in this loan …US$50M is a good start, but as you know it will not build the road right to Timehri.”He said he is eager for a consultant to be identified and designs to be made so that the government can make “maximum use of the loan.”

India satisfied
Meanwhile, Indian High Commissioner Venkatachalam Mahalingam said India is satisfied with its role in the project and noted that the signing of the agreement paves the way for the other aspects of the project to start. “We have been waiting for a long time to have this MOU signed with Guyana and I am happy that we are here today to sign this MOU, but what is more important is what is to continue after this MOU… finding the consultant is the first step and then starting the bidding process, awarding the contract and finally the execution of the contract,” The Indian High Commissioner stated.
He spoke to the design, contract award and the beginning of the road construction. “I am assuring the Ministry of Finance and the Ministry of Public Infrastructure that we will go all the way to cooperate with the Government of Guyana in executing the project”, said High Commissioner Mahalingam.
“As soon as we finalise the Indian Consultant…he will work out the technical parameters,” the High Commissioner added. Under the People’s Progressive Party (PPP) a feasibility study on the project was completed but a review of the study will be done. With the ever increasing housing communities along both the East Coast and East Bank, the Minister of Public Infrastructure has guaranteed that there will be no disruption of work or progress already ongoing. According to Minister Patterson, the construction of the road will be of significant benefit to the existing projects along the stretch of road.
Meanwhile, an alternative agreement was signed between the GoG and the Government of India to alter the initial line of credit valued at US$4M to be used to acquire 14 pumps for the purpose of drainage and irrigation. According to Minister Jordan only US$3M of the allotted US$4M was used so the parties to the agreement had to re-sign the pact with an amendment to state that fact.